Plan how to live in retirement, don’t just plan how to pay for it.

This month’s ‘Real Simple’ magazine had a great article from the editors of ‘Money’ called Life, Act II. The article discusses four lessons one should consider when planning for retirement.

#1: Figure out what you enjoy — Write down seven occasions when you were particularly happy. What about these events made you happy? Were you being creative? Working with others? Contemplating joyful events can help you discover new passions you might not have previously considered.

#2: Readjust your “portfolio” — Draw a pie chart of how you spend your time. Consider work, family, travel, etc. Then sketch out how you envision this pie chart after your retire. Focusing on those passions you most enjoy.

#3: Test drive your fantasy — Try out your passion while you’re still working either on weekends or on a part time basis.

#4: Keep setting new goals — Set objectives for yourself in retirement. This prevents boredom and ensures you always have something to look forward to.

I think this article applies not just to retirement but to life outside of the working world as well. Most of us are so caught up in our daily lives that we don’t find time to pursue our passions. I for one, am going to try to take #3 to heart. After all, why wait until retirement to enjoy life?

This is useful advice. Most folks don’t plan appropriately for their retirement. One thing that is often forgotten is reviewing your insurance policies. And, selling stock that isn’t performing is a good thing to consider, as well.